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    Question

    A company measures its financial asset at amortised

    cost. It earns fixed interest and has no intention to sell before maturity. Which Ind AS permits this measurement basis?
    A Ind AS 115 Correct Answer Incorrect Answer
    B Ind AS 109 Correct Answer Incorrect Answer
    C Ind AS 36 Correct Answer Incorrect Answer
    D Ind AS 21 Correct Answer Incorrect Answer

    Solution

    Ind AS 109 allows measurement of financial assets at amortised cost if the business model is to hold assets and receive cash flows (not trade).

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